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FY 2017 Summary - Private Equity Review & Outlook

Highlights

  • Global fundraising remained robust during 2017. Various markets broke records for the largest private equity and venture capital funds ever raised. Aggregate volume increased for buyout and private equity funds; however declined but remained at elevated levels for venture funds.
  • The buyout investment pace remained steady across regions. Invested capital varied, with large-cap buyouts in Asia-Pacific and Europe lifting the overall deal volume. In the US, investment volume was down as investment activity was dominated by add-on acquisitions of small and mid-cap companies.
  • Exit volume trailed due to subdued exits to trade buyers in the US and Europe. GPs continued to generate strong levels of liquidity through dividend recapitalizations and public markets, with PE-backed IPO activity improving across all regions.
  • After a moderate 2016, US and European venture investment volumes rebounded in 2017 as late-stage investments attracted large financing rounds. Exit activity continued at a robust and steady pace, with aggregate exit value falling only slightly short of the prior year’s benchmark.
  • The secondary market demonstrated impressive deal volume levels reinforcing the fundamental growth story of the asset class. Pricing of secondary interests rose, driven by a multitude of factors ranging from quality and age of funds offered, to dry powder availability in the secondaries market.

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